quote: *maybe* owning a home one day. I would also like to be secure in retirement.

Both goals may be almost out of reach. You earn $87k in the Bay Area. Ca Tax, Fed Tax, Payroll Tax probably leave you with around $50k net. Your shelter - apt, utilities - probably takes over $25k, leaving you with $25k for "all other" - transportation, food, groceries, entertainment, medical, investing.

So - very hard to invest for retirement - and very hard to finance a house - even a small, older, house in a not-so-good area costs around $500k.

During the approx 30 years of "wealth-building" that you'll probably have, you'll need to invest about $500/m to $1000/m. (Then you move into your "wealth-preservation" years where you quit adding wealth and move into 'safe' things such as CD's, bonds, savings.)

To fix your problem at the root-cause level, (sky high housing, high taxes, high COL) you'd need to leave CA and move to fly-over country. If you are tied to CA, you could move Inland (Modesto, Fresno, etc). The taxes are still at CA levels but the housing in more in line with other states.

Fri Aug 25, 2017 10:21 pm

marklarNew Member

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Thanks for taking the time to respond!

quote:Originally posted by oldguy

Both goals may be almost out of reach. You earn $87k in the Bay Area. Ca Tax, Fed Tax, Payroll Tax probably leave you with around $50k net. Your shelter - apt, utilities - probably takes over $25k, leaving you with $25k for "all other" - transportation, food, groceries, entertainment, medical, investing.

Wow, you are quite accurate there - those numbers are pretty close

quote:Originally posted by oldguy

During the approx 30 years of "wealth-building" that you'll probably have, you'll need to invest about $500/m to $1000/m. (Then you move into your "wealth-preservation" years where you quit adding wealth and move into 'safe' things such as CD's, bonds, savings.)

What about the pension (2% at 55) and 403b contributions. - would that not be enough for retirement?

quote:Originally posted by oldguyTo fix your problem at the root-cause level, (sky high housing, high taxes, high COL) you'd need to leave CA and move to fly-over country. If you are tied to CA, you could move Inland (Modesto, Fresno, etc). The taxes are still at CA levels but the housing in more in line with other states.

That's a tough one - I'm very tied to the Bay Area and love living here. However, I do see your point that if I ever want to own a home, I would have to move.

That $6000/yr for 20 years on top of your $28.5k balance, will be $268,000 at 5% - or $530,000 at 10%. (As you can see it is very important to you which investment that you select inside your 403 & Roth.)

You'll probably need quite bit more than that in 2037. How much does the CalPers pay? And do you get an SS pension?

Sat Aug 26, 2017 1:26 am

warrenzephaniahNew Poster

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To settle your concern at the main driver level, (out of this world lodging, high assessments, high COL) you'd have to leave CA and move to fly-over nation. UK Dissertation hard to contribute for retirement - and difficult to back a house - even a little, more seasoned, house in a not all that great territory costs around $500k.

Sat Aug 26, 2017 6:00 am

marklarNew Member

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quote:Originally posted by oldguy

You'll probably need quite bit more than that in 2037. How much does the CalPers pay? And do you get an SS pension?

CalPers pays depending on service years, so between 70-80% of my salary depending on retirement age. I am eligible for SS pension.

Sat Aug 26, 2017 10:05 pm

SvarogFirst Time Poster

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Since you're an IT specialist - why don't you move to a cheaper country/state/area and work remotely? This is the best way for saving money you can possibly think of in your situation.

Fri Oct 20, 2017 7:27 am

marthawilson710New Poster

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I am confused need more information. Are you saying that you currently have a house? Are you looking to buy a new home or a second home?
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Wed Nov 22, 2017 7:13 am

BlackMenNew Member

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